There Is No Perfect Time to Sell Bitcoin, Only Incredible Opportunities to Accumulate More BTC
After several months with a price that remained rather stable, Bitcoin entered a bull rally at the beginning of October 2020. This rally took everything in its stride as the Bitcoin price went, in a few weeks, from $10.5K to a high of $19,390 on November 24, 2020.
Throughout this bull rally, many people kept thinking: is this the perfect time to sell my BTC and take my profits?
I notice that a significant number of people still consider Bitcoin solely as a financial investment. Therefore, they act with Bitcoin in the same way they would act with a stock like the stock of Tesla. These people are always looking for the perfect time to sell their Bitcoins.
I have identified five moments where this issue has come up repeatedly since the beginning of October 2020:
This question arose at $11.5K, then at $12.8K, $15.8K, $18K, and of course very close to a new ATH at $19.3K.
As the bull rally progressed, it became more and more obvious that we were entering a “Sell High” phase. As Mark Twain once put it so well:
“History doesn’t repeat itself, but it often rhymes.”
Under these conditions, everyone remembers what happened previously whenever the Bitcoin price has experienced such a bull rally. A correction of 20–30% followed.
So many were on the lookout to make a profit with their Bitcoin by selling high before buying lower.
This technique is similar to trading. But, as I keep saying, trading is a discipline that requires very specific skills that very few people have. Those who try to be Bitcoin Traders when they don’t have these skills will sooner or later end up losing a lot of money.
These people seek to sell their Bitcoins by targeting the top of the bull rally which is impossible to predict. Once their Bitcoins are sold, these people will try to buy back Bitcoin again when a correction occurs.
Just as it is impossible to predict the top of the bull rally, it is impossible to predict the bottom of the correction that we are likely to see.
Thus, those who sold their Bitcoins between $18.5K and $19.3K will then be asking themselves over and over again: is this the perfect time to buy Bitcoin again?
On November 26, 2020, following a tweet from the CEO of Coinbase, the Bitcoin price went from $19.3K to $16.5K in just a few hours. The Bitcoin price then stabilized in the $17K range before rebounding to $18K at the time of writing.
In the course of this movement, I believe that many of the people who sold their Bitcoins have still not regained their positions. They were hoping for a stronger correction in the 20–30% range, so a Bitcoin price that could move down into the $13.5K — $14.5K range.
This correction could still take place in the coming days. In fact, I see three reasons that lead me to believe that it will take place. However, there is no certainty that this is the case.
The Bitcoin price may very well continue to rise, break the major resistance at $18.7K, and then fly to a new ATH above $20K in the coming days. Anything is possible.
Will those who will have sold their BTC buy back without having made a profit as they had hoped?
I bet they won’t want to buy back without making a profit. Then they could lose a lot of BTC by going back into the dance beyond the $20K.
This attitude seems harmless, but when the Bitcoin price reaches $100K by the end of 2021, it will make a big difference. All those Satoshis left behind will give you eternal regrets. Instead of doing so, they must assimilate the following reality:
There is no perfect time to sell Bitcoin, only incredible opportunities to accumulate more.
You must absolutely adopt the philosophy of a Bitcoin HODLer. After every purchase of BTC, you must put them in cold storage and then never touch them again, no matter what happens. Don’t give in to greed, which is the number one enemy in the world of Bitcoin.
Greed Is the Number One Enemy in the Bitcoin World
Don’t let this sin make you miss out on the Bitcoin revolution.
Every time the Bitcoin price goes down, like during the drops we experienced during this bull rally, take advantage of that to accumulate more BTC. Using the chart of Bitcoin price evolution that I presented to you earlier, this would have given you the following opportunities:
Just being a Bitcoin HODLer actually gives you much more opportunities to accumulate more BTC than trying to find the perfect time to sell and buy Bitcoin.
To do this, you must of course have complete confidence in the Bitcoin revolution. I do, and I can tell you that I have been buying Bitcoin at just about every price level for several years. This smoothes my costs and has allowed me to accumulate much more BTC than if I had tried to find the perfect time to buy/sell Bitcoin.
This brings me back again to that story I wrote at the beginning of the summer of 2020: the perfect time to buy Bitcoin is always now.
It’s up to you to decide and make the right decisions.